Taxability of derivatives, futures and forward contracts in GST

Whether GST will applicable on derivatives futures and forward contracts? Service charges, documentation fees, broking charges would be liable to GST. Read more about taxability of deivatives & futures under GST at taxgyata.com
CGST Act specifically excludes securities from the definition of Goods. As per Section 2(52), Goods means any movable property except money and securities. The definition of Services means anything other than goods, money and securities. Therefore, trading in shares and securities will not be considered as supply in GST.

As per section 2(h)(1a) of Securities Contracts (Regulation) Act (SCRA), Derivatives’ are included in the definition of ‘securities’.

Section 2(101) of the CGST Act, 2017 provides that ‘securities’ shall have the same meaning as assigned to it in clause (h) of section 2 of the SCRA. As ‘derivatives’ fall in the definition of securities, they are not liable to GST.

However, if some service charges or service fees or documentation fees or broking charges or such like fees or charges are charged, the same would be a consideration for provision of service and chargeable to GST.